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- W94609548 abstract "While exact figures may be unavailable, a very large percentage of retail goods and services are distributed through franchised outlets. It is therefore unremarkable that this business strategy receives so much attention. In spite of all the attention that Congress and the Federal Trade Commission have devoted to franchising, there is little regulation at the federal level. To be sure, the Federal Trade Commission's Franchise Rule requires pre-sale disclosure with respect to most offers of franchise units. However, there is no requirement that the disclosure document be filed with the Federal Trade Commission or any other federal agency or official. In addition, the franchise relationship itself is not subject to significant federal regulation. Because of the significant stakes involved in franchising and the potentially conflicting interests of franchisors and franchisees, there is continuing disagreement about a number of issues including, but not limited to: i) whether a federal filing requirement for franchise disclosure documents should be imposed; ii) whether states' pre-sale disclosure laws should be pre-empted; iii) whether there should be a private cause of action for violation of the Federal Trade Commission's Franchise Rule; iv) whether there is a need for federal regulation of the franchise relationship itself, either by the Federal Trade Commission or new legislation; and v) whether there is need for federal regulation of the franchise relationship and, if so, the form such regulation should take. This paper only attempts to answer the first of these questions. However, the answer suggested may help pave the way for productive consideration of the remaining questions. After a brief discussion of the assumptions guiding the author's analysis, the paper discusses some rough similarities between the franchise relationship and the sale of common shares, and their different treatment under the federal securities laws. It then gives a brief comparison of the federal regulatory schemes governing public offerings of securities and the offering of franchise interests. The paper concludes with a proposal that franchisors be mandated to electronically file the pre-sale disclosure document already required to be provided to prospective franchisees by the Franchise Rule, and a brief discussion of implementation of this proposal." @default.
- W94609548 created "2016-06-24" @default.
- W94609548 creator A5005447765 @default.
- W94609548 date "2009-03-11" @default.
- W94609548 modified "2023-09-25" @default.
- W94609548 title "Taking Note of the Investment Aspect of Purchasing a Franchise: A Proposal for Required Electronic Filing of Pre-Sale Disclosure Documents" @default.
- W94609548 hasPublicationYear "2009" @default.
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